Annual Report 2020 - JPMorgan Chase

n

2020

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$30B

ed

to advance

racial equity

A NNU A L REPORT

Financial Highlights

As of or for the year ended December 31,

(in millions, except per share, ratio data and headcount)

2020

2019

2018

Selected income statement data

Total net revenue

$ 119,543

$ 115,399

$ 108,783

Total noninterest expense

66,656 65,269 63,148

Pre-provision profit

52,887 50,130 45,635

Provision for credit losses

17,480

5,585

4,871

Net income

$ 29,131

$ 36,431

$ 32,474

Per common share data

Net income per share:

Basic

$

Diluted

Book value per share

Tangible book value per share (TBVPS)(a)

Cash dividends declared per share

8.89

$

8.88

81.75

66.11

3.60

10.75

$

10.72

75.98

60.98

3.40

Selected ratios

Return on common equity

Return on tangible common equity (ROTCE)(a)

Liquidity coverage ratio (average)(b)

Common equity Tier 1 capital ratio(c)

Tier 1 capital ratio(c)

Total capital ratio(c)

12%

14

110

13.1

15.0

17.3

15%

19

116

12.4

14.1

16.0

9.04

9.00

70.35

56.33

2.72

13%

17

113

12.0

13.7

15.5

Selected balance sheet data (period-end)

Loans

$1,012,853

$ 997,620

$1,015,760

Total assets

3,386,071 2,687,379 2,622,532

Deposits

2,144,257 1,562,431 1,470,666

Common stockholders¡¯ equity

249,291 234,337 230,447

Total stockholders¡¯ equity 279,354 261,330 256,515

Market data

Closing share price

Market capitalization

Common shares at period-end

$ 127.07

$ 139.40

$

97.62

387,492 429,913 319,780

3,049.4 3,084.0 3,275.8

Headcount

255,351 256,981 256,105

(a) TBVPS and ROTCE are each non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm¡¯s Use of Non-GAAP

Financial Measures on pages 62¨C64 for additional information on these measures.

(b) Refer to Liquidity Risk Management on pages 102¨C108 for additional information on this measure.

(c) The ratios presented are calculated under the Basel III Fully Phased-In Approach. Refer to Capital Risk Management on pages 91¨C101

for additional information on these measures.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets

of $3.4 trillion and operations worldwide. The firm is a leader in investment banking,

financial services for consumers and small businesses, commercial banking, financial

transaction processing and asset management. A component of the Dow Jones Industrial

Average, JPMorgan Chase & Co. serves millions of customers in the United States and

many of the world¡¯s most prominent corporate, institutional and government clients

under its J.P. Morgan and Chase brands.

Information about J.P. Morgan¡¯s capabilities can be found at and about

Chase¡¯s capabilities at . Information about JPMorgan Chase & Co. is available

at .

$30B

#1

100

ADVANCE RACIAL EQUITY

INVESTMENT BANK

HUMAN RIGHTS EQUALITY

$30 billion to advance

racial equity

#1 globally in both investment

banking fees and Markets revenue

100: Score on Human Rights

Campaign¡¯s Corporate Equality Index

$200B

$2.3T

#1

SUSTAINABLE DEVELOPMENT

CREDIT AND CAPITAL RAISED

CUSTOMER SATISFACTION

Committed to finance and facilitate $200

billion to drive action on climate change and

advance sustainable development

$2.3 trillion in credit and capital

raised for consumers and clients of

all sizes, including those in some of

the hardest-hit industries

#1 in customer satisfaction with

online banking among national

banks according to J.D. Power

#1

#1

TRADITIONAL

MIDDLE MARKET LENDER

TOP 10

MULTIFAMILY LENDER

#1 traditional Middle Market

bookrunner in the U.S.

Named to Fortune magazine¡¯s

Most Admired Companies list

#1 U.S.

multifamily lender

#1

$276B

#1

WEALTH MANAGEMENT APP

AWM CLIENT ASSET INFLOWS

COVID-19 RESPONSE

#1 digital wealth management app

according to J.D. Power

$276 billion in total Asset & Wealth

Management client asset inflows

#1 bank for COVID-19 response

according to JUST Capital

Dear Fellow Shareholders,

Jamie Dimon,

Chairman and

Chief Executive Officer

2020 was an extraordinary year by any measure. It was a year of a global

pandemic, a global recession, unprecedented government actions, turbulent

elections, and deeply felt social and racial injustice. It was a year in which each of

us faced difficult personal challenges, and a staggering number of us lost loved

ones. It was also a year when those among us with less were disproportionately

hurt by joblessness and poverty. And it was a time when companies discovered

what they really were and, sometimes, what they might become.

Watching events unfold throughout the year, we were keenly focused on what we,

as a company, could do to serve. As I begin this annual letter to shareholders,

I am proud of what our company and our tens of thousands of employees around

the world achieved, collectively and individually. As you know, we have long championed the essential role of banking in a community ¡ª its potential for bringing

people together, for enabling companies and individuals to reach for their dreams,

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and for being a source of strength in difficult times. Those opportunities were

powerfully presented to us this year, and I am proud of how we stepped up.

I discuss these themes later in this letter.

As I look back on the last year and the last two decades ¡ª starting from my time

as CEO of Bank One in 2000 ¡ª it is remarkable how much we persevered and have

accomplished, not only in terms of financial performance but also in our steadfast dedication to help clients, communities and countries throughout the world.

2020 was another strong year for JPMorgan Chase, with the firm generating record

revenue, as well as numerous other records in each of our lines of business. We

earned $29.1 billion in net income on revenue of $122.9 billion versus $36.4 billion

on revenue of $118.5 billion in 2019, reflecting strong underlying performance across

our businesses offset by additional reserves under new accounting rules. We generally grew market share across our businesses and continued to make significant

investments in products, people and technology, all while maintaining credit

discipline and a fortress balance sheet. In total, we extended credit and raised

$2.3 trillion in capital for businesses, institutional clients and U.S. customers.

JPMorgan Chase stock is owned by large institutions, pension plans, mutual funds

and directly by individual investors. However, it is important to remember that

in almost all cases, the ultimate beneficiaries are the individuals in our communities. More than 100 million people in the United States own stock, and a large

percentage of these individuals, in one way or another, own JPMorgan Chase stock.

Many of these people are veterans, teachers, police officers, firefighters, healthcare workers, retirees or those saving for a home, school or retirement. Your

management team goes to work every day recognizing the enormous responsibility

that we have to perform for our shareholders.

While we don¡¯t run the company worrying about the stock price in the short run, in

the long run our stock price is a measure of the progress we have made over the

years. This progress is a function of continual investments in our people, systems

and products, in good and bad times, to build our capabilities. Whether looking

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